Stmnt re Expressway

Zhejiang Expressway Co
2 January 2001


    Zhejiang Expressway Company Limited - Completion and
    Commencement of Operation of the Shangsan Expressway

(Hong  Kong,  27th  December,  2000)  --  The  directors  of
Zhejiang Expressway Co., Ltd. (the 'Company') are pleased to
announce  that  the construction of the Shangsan  Expressway
(the  'Expressway',  formerly known  as  the  Shangyu-Sanmen
Road)  has  been completed and opened to traffic  and  began
toll collection on December 26th, 2000.

Background

The  Shangsan  Expressway is a four-lane expressway  with  a
total  length  of approximately 143 km. It runs  from  Guzhu
Interchange  on  the  Hangzhou-Ningbo  Expressway   at   the
northern  end  to  Wuao Interchange on  the  Ningbo-Taizhou-
Wenzhou Expressway at the southern end, with a total  of  11
toll stations and 3 service stations situated in between.

The  Construction  of the Expressway was  divided  into  two
phases.   Phase  1,  consisting of four  short  sections  in
Shangyu, Shengzhou, Xinchang and Tiantai with a total length
of 37.5 km, has been operational since February 1997.  Phase
2:  connecting  Hangzhou-Ningbo Expressway and  the  Ningbo-
Taizhou-Wenzhou Expressway was completed in December 2000.

The  Company holds a 61% ownership interest in the  Shangsan
Expressway   Co.,  Ltd.  (the  'Shangsan  Co',   a   company
established  in the People's Republic of China with  limited
liability and the holding company of the Expressway), whilst
Huajian  Transportation Economic Development Center, Tiantai
County  Transport  Development Company, Zhejiang  Provincial
High  Class  Highway  Investment  Company  Limited,  Shangyu
Municipal  Transport Investment Company, Shengzhou  Shangsan
Development   Company  and  Xinchang  Transport  Development
Company  each holds 18.4%, 7%, 6.6%, 3%, 2% and 2% ownership
interests in the Shangsan Co, respectively.

Pursuant  to a concession agreement relating to the Shangyu-
Sanmen  Road  with  Zhejiang  Provincial  Government   dated
October  31st,  1997  ('the Concession Agreement')  and  the
Ministry of Communications of China's approval, the  Company
has  been  granted  the  rights to  construct,  operate  and
collect tolls of the Expressway.

The  operation  of,  and toll collection  on,  the  Shangsan
Expressway,  including routine maintenance will  be  carried
out  by  the Shangsan Co and any major overhaul will be  put
out to tender.

Toll Rates

In  accordance with the Concession Agreement, the  following
toll  rates  for  the newly opened Shangsan Expressway  have
been  approved  by the Zhejiang Provincial Government  dated
December  25th,  2000  with  effect  immediately  upon   the
commencement of operation of the Expressway:

Vehicle                             Entrance       Mileage Fee
                                    Fee*
 Class  Classification Standards   (RMB/vehicle)  (RMB/vehicle/km)

   1    Cars,  vans and  trucks     5.00           0.40
        of 2 tons or less                           
   2    Buses  and  trucks   of     10.00          0.80
        over  2  tons  but  not                     
        more than 5 tons                            
   3    Minibus  and trucks  of     15.00          1.20
        over  5  tons  but  not                     
        more than 10 tons                           
   4    Trucks of over 10  tons     20.00          1.60
        but  not  more than  20                     
        tons                        
   5    Trucks of over 20 tons      25.00          2.00

*Note:
A  section  of approximately 15 km of Ningbo-Taizhou-Wenzhou
Expressway  is  connected  to  the  southern  end   of   the
Expressway.    Entrance  fee  is  split  between   the   two
expressways based on the mileage traveled on the  respective
expressways.
                              
                              
Company Information

The   Company   and  its  subsidiaries  (the  'Group')   are
principally  engaged  in  investing  in,  constructing   and
managing high grade roads.  The Group also operates  certain
ancillary   businesses,   such  as   automobile   servicing,
operations of gas stations and bill board advertising  along
expressways.

The  H  Shares  of  the  Company were listed  on  The  Stock
Exchange  of Hong Kong Limited in May 1997, and subsequently
obtained a secondary listing on the London Stock Exchange in
May 2000.

The  principal  assets  of the Group include  the  Shanghai-
Hangzhou-Ningbo Expressway and the Shangsan Expressway.
                              
For further information, please contact:

Zhejiang  Expressway Co., Ltd.         Tel: [phone]
Mr. Gabriel Yu/ Tony Zheng             Fax: [phone]

Citigate Dewe Rogerson                 Tel: [phone]
Ms. Romagers Chan                      Fax: [phone]